Orora has reduced its FY26 earnings guidance for Saverglass, citing disruption linked to the Middle East conflict.
The company expects FY26 underlying EBIT for Saverglass of €63m ($73.5m) to €68m, excluding direct effects from the conflict.
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Earlier guidance had pointed to a result broadly in line with FY25 EBIT of €79.2m.
Saverglass’s reported EBIT for the year ended 30 June 2026 is now forecast at €52m to €59m.
Orora said the decreased reported result reflects both direct and indirect consequences of the conflict.
The direct effect relates to the Ras al Khaimah facility in the UAE, where the impact on H2 FY26 EBIT is estimated at €9m to €11m.
This amount will be disclosed separately as a significant item in the FY26 annual report.
Indirectly, the company said earnings have been affected by weaker-than-expected volumes and a less favourable sales mix.
It cited a larger shift towards premium wine and champagne, relative to premium spirits, along with within-category mix changes that reduced average selling prices and margins.
Orora expects this to reduce H2 FY26 EBIT by about €11m to €16m.
There is no change to FY26 guidance for Cans or Gawler.
Since the conflict began on 28 February 2026, shipping routes have shut, and overland access has been cut off.
Orora has decided to place the RAK facility into a closed-loop “hot” operation, meaning the furnace will remain warm, but bottle production will stop.
The RAK furnace, which has four lines, accounts for roughly 15% of Saverglass production capacity.
Most recent output from the site has been for premium and ultra-premium wine bottles sold into North America.
That production will move to Mexico, with moulds to be transferred to the Acatlán plant for output from late FY26.
Orora said all team members in the region are safe and the RAK site has not been damaged.
For H2 FY26, the company expects wine and champagne to account for 60% of the wine and spirits sales mix, around eight percentage points above the prior corresponding period.
Saverglass’s FY26 depreciation and amortisation is now expected to be €70m, around €2m lower due to delays to capital expenditure projects, including the lightweighting programme at RAK.
Orora said leverage is forecast to remain below 1.5× in June 2026. Its on-market buyback has been paused while it monitors the conflict’s effects.
